What's next ?This announcement today explains a lot of things over the past few months. There has been precious little information coming from the company....now we know why.
This a huge deal for Petroamerica. Many have speculated recently (including myself) whether Petroamerica would be acquired. The management has another plan. It looks like they are going for it !! If this deal is completed Petroamerica adds 4 blocks and much needed 2P reserves.
What's next:
I assume we will hear an announcement of the new Credit Facility that will be needed to develop all of these blocks.
a 10/1 share consolidation will bring our share count to close to 100 million which will be much more attractive to investors. We will not see any drop in share price as some are speculating.
I think we will be seeing an operational update shortly that will explain the game plan moving forward.
We are no longer dependent on Parex which is a very important step in the development of this company.